Car Loans Myths Debunked

Getting to finally own a car and driving on the roads of Singapore comes with some unique sense of freedom and success.

However, many people rarely get to accomplish this dream because putting together the thousands of dollars that are required to buy cars is never easy. The next best alternative, using car financing, but it is marred with myriads of myths.

If you do not have enough cash to purchase the car on your own, go for car financing Singapore. In this post, we will debunk common myths about car loans in Singapore, and also demonstrate the best method of applying for car financing:

#1: Your Car Loan Cannot be Approved with Poor Credit Score

This is not true. When reviewing applications for car loans, lenders use the borrowers’ credit score to determine their creditworthiness.  If you have a poor credit score, it does not mean that you will not get car financing. Rather, the loan might be approved, but it will come with a higher interest rate.

So, it will be a good idea to start by improving your credit score before applying for car financing Singapore. If you get the loan and the score improves significantly with time, most lenders will allow you to ask for refinancing.

#2: All Car Loan Lenders are the Same

This is incorrect.  All car financing firms are not the same. You might find a dealer with higher car prices, another one dealing with used cars only, and another still who only works with imported models. Car loan lenders can be categorized broadly into two:

  • Car dealership: In this case, you get the loan from a car dealer who does all the paperwork and secures the loan from a bank on your behalf.
  • Direct bank car loans: Instead of using a third-party dealer to get the car loan, this option involves working directly with the bank.  The overall cost of the loan might be lower compared to using a dealer because there is no third party.

#3: A Car is Very Expensive to Maintain

Well, this is a misconception. While it is true that a car comes with its own set of expenses, such as insurance, the cost for gas, and maintenance, it is how you view them that determines whether they are worth. For example, a person who takes a car loan for a business vehicle will get some income from the vehicle despite the expenses.

To avoid being overwhelmed by the cost of operating a car, it will be a good idea to think of its running costs and make adjustments to your budget. If you plan for it well, every moment in the car will be worth celebrating.

Apply for Car Financing through Lendela

Now that we have debunked the myths, it is time to get down and apply for car financing. The best way to do this is through Lendela, a lender comparison site that is designed to simplify the process of loan application. Here are the main steps to follow when applying for a car loan through Lendela:

  • Visit Lendela website to create an account and make a short application.
  • Lendela will send the application to different lenders who will give offers.
  • Review the offers and select the most preferred option.
  • Get an appointment and sign off the loan.
  • Drive off in the car of your dreams. Congratulations!

As you can see, there are many obstacles that can prevent you from getting the car of your dreams. However, you now know the truth and can get on the road to enjoy every moment of your life. Remember to follow the agreed terms and conditions for loan repayment strictly.